§40-2  Accounting systems and internal
control; enforcing the use of and inspection of the same.  The accounting
system installed by the commission on public accountancy under Act 181, Session
Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for
use in the offices of the comptroller, director of finance, departmental and
agency services of the State, and the auditors, treasurers, departmental and
agency services of the several counties shall be the accounting and reporting
systems of the State and counties; provided that the University of Hawaii,
until June 30, 2011, may install a different accounting system which shall be
in conformity with generally accepted accounting principles as applied to
colleges and universities; and provided further that the department of
education, until June 30, 2011, may install a different accounting system which
shall be in conformity to generally accepted accounting principles.  The
comptroller shall make such changes and modifications in the accounting system
as shall from time to time appear to be in the best interest of the State and
counties.



The departments and agencies of the executive
branch are respectively charged with the responsibility to maintain an adequate
system of internal control and with the further responsibility to see that the
internal control system continues to function effectively as designed.  The
comptroller shall make such investigations and audits from time to time to
enforce the use of the accounting system and internal control systems in the
executive branch.



The judiciary, the legislature, and each county
shall be responsible for the establishment and maintenance of its respective
internal control system. [L 1898, c 39, §10; RL 1925, §1437; am L 1927, c 219,
§3; RL 1935, §564; RL 1945, §1568; RL 1955, §34-17; am L 1957, c 152, §1; am L
1959, c 151, §1; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §40-2; am
L 1974, c 159, §5; am L 1986, c 321, §§5, 12; am L 1987, c 283, §69; am L 1989,
c 371, §7; am L 1991, c 163, §3; am L 1993, c 314, §2; am L Sp 1993, c 8, §22;
am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2005, c 137, §1; am L 2006, c
161, §§2, 7]